Industry Solution Sheet: Financial Services

Challenges and Capabilities
Mathematical optimization is a well-established,essential technological tool in the financial services
industry. For over 50 years, mathematical optimization
technologies have been used by leading companies
across the financial services ecosystem (including
institutional and consumer banks, wealth management
firms, hedge funds, insurance providers, and fintechplayers) to:
Address a wide variety of complex businessproblems including portfolio optimization,
cash management, trade settlement, and asset
liability management.
Make optimal, data-driven decisions thatdeliver improved operational efficiency, profitability, and regulatory compliance as well as
reduced risk and costs.
Indeed, mathematical optimization is a proven, pivotal,and pervasive technology in the financial services
industry – but still, companies in this space are constantly discovering and unlocking new opportunities to:
Enhance their use of mathematical optimization
with a state-of-the-art solver, like the Gurobi
Optimizer, which is capable of handling eventhe most challenging business problems withthe utmost speed, robustness, and reliability.

operations and make the best possible businessdecisions when it comes to questions like:
How can we optimize the asset allocation of ourportfolios to maximize risk-adjusted returns?
How can we minimize the costs of managing
our assets?
How can we ensure regulatory compliance while
minimizing risk?
How can we maximize the utilization of ourresources at the lowest cost?
With mathematical optimization technologies, financial
services companies can answer these questions byautomatically generating optimal solutions to theirmost complex business problems and then using thosesolutions to determine the best courses of action.
With mathematical optimization technologies, financial
services companies can transform their operations andreach the highest levels of productivity, performance,and profitability.

Expand their use of mathematical optimization
to new business areas across financial services
operations including systemic risk management,
portfolio replication, credit swap management,
fraud cost reduction, and countless others.
In recent years, we have seen a steady increase in
the number of financial services companies using
mathematical optimization, the number of different
mathematical optimization applications developed
and deployed by these companies, and the positive
impact of mathematical optimization on thesecompanies’ operations and bottom lines.
The most successful financial services companies
today rely on mathematical optimization technologies
to help them efficiently manage their assets andFor more information, visit Gurobi.com, email us at info@gurobi.com, or call +1 713-871-9341

Industry Solution Sheet: Financial Services

Opportunities for Optimization
Mathematical optimization is used by financial services
companies today to optimize many different customerfacing and back-office functions. Here are some of themain applications of mathematical optimization in thefinancial services industry:

Asset Management• Portfolio Optimization• Collateral Allocation• Portfolio Replication• Bond Management

Business Benefits• Hedging Strategies

With mathematical optimization technologies, financial
services companies can tackle their complex businessproblems, optimize their decision making, and achieve
their business goals by:• Debt Management• Credit Swap Management• Trade Settlement• Maximizing returns• Asset-Liability Management• Boosting resourceutilization and operational
efficiency• Payment Netting• Systemic Risk Management

Operations Management• Cash Management• Collection Management• Improving regulatorycompliance• Reducing operating,transaction, and customer
acquisition costs• Increasing processing speed• Improving customer service• Maximizing profitability

Example Customers
Here is a selection of Gurobi customers from thefinancial services industry that use mathematicaloptimization to revolutionize their operations andrealize tremendous business benefits:• Branch Network Optimization• Fraud Cost Reduction• Credit Card Offering Optimization• Appointment and Field Service
Scheduling

For more information, visit Gurobi.com, email us at info@gurobi.com, or call +1 713-871-9341